[SUPERIOR UNIFORM GROUP, INC. LOGO]
NEWS RELEASE
Superior Uniform Group, Inc.
An American Stock Exchange Listed Company
10055 Seminole Boulevard
Seminole, Florida 33772-2539
Telephone (727) 397-9611
Fax (727) 803-9623
Contact: Andrew D. Demott, Jr., CFO FOR IMMEDIATE RELEASE
(727) 803-7135
SUPERIOR UNIFORM GROUP ANNOUNCES 26% INCREASE IN EARNINGS
FOR THE QUARTER ENDED SEPTEMBER 30, 2003
SEMINOLE, Florida – October 23, 2003 – Superior Uniform Group, Inc. (AMEX: SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the third quarter ended September 30, 2003, sales were $35,212,248 compared with 2002 third quarter sales of $36,674,776. Net income was $1,989,887 or $.27 per common share (diluted), compared with net income of $1,580,883 or $.22 per common share (diluted) in the 2002 third quarter.
For the nine months ended September 30, 2003, sales were $100,354,781, compared with sales of $108,765,106 in the nine months ended September 30, 2002. Net income before cumulative effect of change in accounting principle for the nine months ended September 30, 2003 was $3,899,138 or $.53 per common share (diluted), compared to $3,491,868 or $.49 per common share (diluted) reported in the first nine months of 2002. Net earnings for the nine months ended September 30, 2003 was $3,899,138 or $.53 per common share (diluted) versus a net loss of $1,012,695 or $.14 per common share (diluted) in the first nine months of 2002. The net loss for the nine months ended September 30, 2002 includes a $4.5 million, non-cash charge reflected as a cumulative effect of change in accounting principle, net of tax in accordance with the newly promulgated Statement of Financial Accounting Standards No. 142 “Goodwill and Other Intangible Assets.”
Gerald M. Benstock, Chairman and C.E.O., commented: “We were quite pleased to report a 26% increase in our net earnings for the quarter and a 23% increase in our diluted earnings per common share despite a slight decline in sales for the quarter. We have further improved our gross margins in the current quarter and are in an excellent position to provide competitively priced products to the market. We are beginning to see improvement in the economic outlook and have been awarded several significant new national account contracts in the last few months that we will begin to service over the next several months. Our financial position and cash generation from operations remain very strong. It is this strength that has allowed us to weather the economic downturn over the last several years and to be able to continue to invest in our organization in preparation for better economic times ahead.”
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Superior Uniform Group, through its marketing divisions – Fashion Seal Uniforms, Martin’s, Empire, Appel, Worklon, Universal, and Sope Creek – manufactures and sells a wide range of uniforms, corporate I.D., career apparel and accessories for the hospital and healthcare fields; hotels; fast food and other restaurants; and public safety, industrial, transportation and commercial markets, as well as corporate and resort embroidered sportswear.
Statements contained in this press release which are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to risks and uncertainties, including without limitation those identified in the Company’s SEC filings, which could cause actual results to differ from those projected.
Comparative figures are as follows:
SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED SUMMARY OF OPERATIONS
(Unaudited)
| | | Three Months Ended September 30,
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| | | 2003
| | | 2002
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Net sales | | $ | 35,212,248 | | | $ | 36,674,776 | |
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Costs and expenses: | | | | | | | | |
Cost of goods sold | | | 22,570,633 | | | | 24,095,329 | |
Selling and administrative expenses | | | 9,408,916 | | | | 9,961,668 | |
Interest expense | | | 172,812 | | | | 186,896 | |
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| | | | 32,152,361 | | | | 34,243,893 | |
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Earnings before taxes on income | | | 3,059,887 | | | | 2,430,883 | |
Taxes on income | | | 1,070,000 | | | | 850,000 | |
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Net earnings | | $ | 1,989,887 | | | $ | 1,580,883 | |
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Weighted average number of shares outstanding during the period | | | | | | | | |
| (Basic) | | | 7,225,47 | 0 Shs. | | | 7,086,098 | Shs. |
| (Diluted) | | | 7,407,80 | 8 Shs. | | | 7,173,225 | Shs. |
Basic net earnings per common share | | $ | 0.28 | | | $ | 0.22 | |
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Diluted net earnings per common share | | $ | 0.27 | | | $ | 0.22 | |
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Dividends per common share | | $ | 0.135 | | | $ | 0.135 | |
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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED SUMMARY OF OPERATIONS
(Continued)
(Unaudited)
| | | Nine Months Ended September 30,
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| | | 2003
| | | 2002
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Net sales | | $ | 100,354,781 | | | $ | 108,765,106 | |
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Costs and expenses: | | | | | | | | |
Cost of goods sold | | | 64,622,092 | | | | 71,458,675 | |
Selling and administrative expenses | | | 29,198,980 | | | | 31,194,907 | |
Interest expense | | | 524,571 | | | | 674,656 | |
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| | | | 94,345,643 | | | | 103,328,238 | |
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Earnings before taxes on income and cumulative effect of change in accounting principle | | | 6,009,138 | | | | 5,436,868 | |
Taxes on income | | | 2,110,000 | | | | 1,945,000 | |
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Earnings before cumulative effect of change in accounting principle | | | 3,899,138 | | | | 3,491,868 | |
Cumulative effect of change in accounting principle, net of tax benefit of $2,560,000 | | | — | | | | (4,504,563 | ) |
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Net earnings (loss) | | $ | 3,899,138 | | | $ | (1,012,695 | ) |
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Weighted average number of shares outstanding during the period | | | | | | | | |
(Basic) | | | 7,171,451 | Shs. | | | 7,061,891 | Shs. |
(Diluted) | | | 7,298,633 | Shs. | | | 7,148,381 | Shs. |
Basic net earnings (loss) per common share: | | | | | | | | |
Earnings before cumulative effect of change in accounting principle | | $ | 0.54 | | | $ | 0.49 | |
Cumulative effect of change in accounting principle, net of tax | | | — | | | | (0.64 | ) |
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Basic net earnings (loss) per common share | | $ | 0.54 | | | $ | (0.14 | ) |
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Diluted net earnings (loss) per common share: | | | | | | | | |
Earnings before cumulative effect of change in accounting principle | | $ | 0.53 | | | $ | 0.49 | |
Cumulative effect of change in accounting principle, net of tax | | | — | | | | (0.63 | ) |
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Diluted net earnings (loss) per common share | | $ | 0.53 | | | $ | (0.14 | ) |
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Dividends per common share | | $ | 0.405 | | | $ | 0.405 | |
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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
(Unaudited)
| | | September 30, 2003
| | September 30, 2002
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CURRENT ASSETS: | | | | | | |
Cash and cash equivalents | | $ | 13,639,339 | | $ | 7,352,957 |
Accounts receivable and other current assets | | | 24,084,048 | | | 25,088,243 |
Inventories | | | 37,007,165 | | | 42,591,013 |
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TOTAL CURRENT ASSETS | | | 74,730,552 | | | 75,032,213 |
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PROPERTY, PLANT AND EQUIPMENT, NET | | | 18,462,546 | | | 21,205,015 |
GOODWILL | | | 741,929 | | | 741,929 |
OTHER ASSETS | | | 5,709,611 | | | 3,729,901 |
DEFERRED INCOME TAXES | | | — | | | 880,000 |
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| | | $ | 99,644,638 | | $ | 101,589,058 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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CURRENT LIABILITIES: | | | | | | |
Accounts payable | | $ | 4,269,996 | | $ | 6,831,390 |
Other current liabilities | | | 4,897,261 | | | 7,001,574 |
Current portion of long-term debt | | | 1,160,523 | | | 1,085,757 |
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TOTAL CURRENT LIABILITIES | | | 10,327,780 | | | 14,918,721 |
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LONG-TERM DEBT | | | 6,569,046 | | | 7,729,569 |
DEFERRED INCOME TAXES | | | 115,000 | | | — |
SHAREHOLDERS’ EQUITY | | | 82,632,812 | | | 78,940,768 |
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| | | $ | 99,644,638 | | $ | 101,589,058 |
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